Stitch Fix recorded an increase in the revenue of 0.7 percent on an annual basis at $ 325 million in the third quarter of the year 25, marking a return to growth. Despite this, active customers decreased by 10.6 percent to 2.35 million. Net revenues per customer increased by 3.2 percent, while the gross margin dropped to 44.2 percent. The company recorded a loss of $ 7.4 million but has maintained strong cash reserves. His income of the fourth quarter and the entire year will be expected to decrease.
The rectified ebitda was $ 11 million, with a margin of 3.4 percent, while the free cash flow was $ 16 million. Stitch Fix concluded the quarter with $ 242.1 million in cash and no debt.
“Stitch Fix provided strong results of the third quarter, marked by our overall return to the growth of revenues year on year,” he said Matt Baer, CEO, Stitch Fix. “Our services, which have passed the expectations, are the direct result of the strength of the proposal for the value of Fix Stitch and the disciplined execution of the team of our strategy. Now in the growth phase of our transformation, we focus on the cementation of our role as a dealer of choice and accessories by constantly offering the experience of shopping more customers and personalized.”
Looking to the future, Stitch Fix provides for Q4 revenues between $ 298 million and $ 303 million, down by 5.2-6.7 percent year on year or flat if adequate to the extra week in exercise24. Net revenues for the entire year should total $ 1,254–1.259 billion, down 5.9-6.2 percent (or 4.3-4.7 percent on a 52-week rectified base). The company plans to put an end to 25 with EBITDA rectified between $ 43 million and $ 47 million and remain a free positive cash flow.
Stitch Fix provides for the gross margin for the whole year to land medium-sided between 44 and 45 % and advertising spending to be at the high end of 8-9 % of the revenue.
Fiber2fashion News Desk (KD)